The World Bank Group’s International Development Association has approved a funding package to help develop the 2,160-MW Dasu Hydropower Stage-I (DHP-1) project on the Indus River in Pakistan.
IDA’s financing comes in the form of a US$588.4 million credit and partial credit guarantee of $460 million that are intended to help mobilize commercial financing for the $4.2 billion plant.
The run-of-river project will be located about 240 km upstream from the 3,480-MW Tarbela hydroelectric complex near Dasu in Pakistan’s Kohistan district. DHP-1 is part of the government’s plan to spur long-term economic growth while also helping the country decrease its carbon emissions.
“The program is an important part of the transformational energy initiative of Pakistan, in which the support from across the World Bank Group is focused on helping Pakistan’s energy sector out of its crisis and onto a more sustainable path that supports economic growth,” World Bank official Rachid Benmessaoud said.
The bank said the project represents its first attempt to finance a large infrastructure project on a sequential basis through a combination of credits and guarantees to mobilize the full financing over the construction period. The credit carries standard IDA terms, with a maturity of 25 years and a 5-year grace period.
Dasu Stage-1 is the first component of a complex that could eventually have an outpuc capacity of about 4,320 MW.
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